New Delhi, June 16 -- India's merchandise exports rose to a record $45.2 billion in May, up 18% year-on-year, but the headline number masks a more complex picture: the role of commodity price inflation, especially in petroleum products.

Mint explains:

Export growth, which had slowed to just 0.9% in FY26, rebounded in April and May, averaging 16.1%. The slowdown in FY26 was driven by tariff-related disruptions, while the recent rebound has been largely price-led.

Petroleum products illustrate the distortion. Exports rose 36.8% in April and 54.9% in May, but volumes fell 22.7% year-on-year in April. That divergence points to price-led expansion in value terms. Excluding petroleum products, export growth slows to 9.0% in April and 11.9% i...